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- What are liability risks Please explain in detail What are liability risks?Please explain in detail.
- Jenna owns a car and carries insurance that covers property damage and liability Her monthly premium is 150 and her deductible is 475 In the last year she had two accidents One caused 1500 in Jenna owns a car and carries insurance that covers property damage and liability. Her monthly premium is $150, and her deductible is $475. In the last year she had two ac...
- A project has a projected IRR of negative 100 percent Which one of the following statements must also be true concerning this project a The discounted payback period equals the life of the project A project has a projected IRR of negative 100 percent. Which one of the following statements must also be true concerning this project?a. The discounted payback period eq...
- Down Under Boomerang Inc is considering a new three year expansion project that requires an initial fixed asset investment of 258 million The fixed asset will be depreciated straight line to Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset will be de...
- What is the net present value of a project that has an initial cash outflow of 7670 and cash inflows of 1280 in Year 16980 in Year 3 and 2750 in Year 4 The discount rate is 12.5 percent What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,980 in Year 3, and $2,750 in Year 4? The di...
- LilyMac Studios a national chain of photography studios, is considering opening up a chain of coffee shop art galleries While the existing operations of the firm have a beta of 117 the new chain LilyMac Studios, a national chain of photography studios, is considering opening up a chain of coffee shop/ art galleries. While the existing operations of the firm have ...
- Given the following data: Cost of debt rD 6 Cost of equity rE 121 Marginal tax rate 35 and the firm has 50 debt and 50 equity Calculate the after tax weighted average cost of Given the following data: Cost of debt = rD = 6%; Cost of equity = rE = 12.1%; Marginal tax rate = 35%; and the firm has 50% debt and 50% equity. Calculate the after-tax ...
- Ivanhoe Corp. had total variable costs of $180,900, total fixed costs of $77,550, and total revenues of $270,000. Compute the required sales in dollars to break even. Ivanhoe Corp. had total variable costs of $180,900, total fixed costs of $77,550, and total revenues of $270,000. Compute the required sales in dollars to break even.
- Explain why bond prices decrease when interest rates increase Explain why bond prices decrease when interest rates increase.
- Why is a cost accounting system a more approprate option than a periodic inventory system for a company that produces custom order outdoor fire pits? Why is a cost accounting system a more approprate option than a periodic inventory system for a company that produces custom order outdoor fire pits?
- The common stock of Taranis Thunder has an expected return of 1785 percent The risk free rate is 39 percent and the market risk premium is 943 percent What is the beta of Taranus stock The common stock of Taranis Thunder has an expected return of 17.85 percent. The risk-free rate is 3.9 percent and the market risk premium is 9.43 percent. What is the be...
- Epona wants to create a 25000 portfolio that consists of three stocks and has an expected return of 126 percent Currently she owns 15685 of stock A and 6474 of stock B The expected return Epona wants to create a $25,000 portfolio that consists of three stocks and has an expected return of 12.6 percent. Currently, she owns $15,685 of stock A and $6,474 of s...
- The first step in cash budget preparation is the Points 3 estimation of credit sales estimation of the expected cash disbursements scheduling of disbursements determination of estimated receipts The first step in cash budget preparation is the (Points : 3)estimation of credit sales estimation of the expected cash disbursements scheduling of disbursements deter...
- Which of these ratios indicate the firmâs ability to use its assets to an increase in sales Points 3 Profitability ratios market value ratios Liquidity ratios Financial leverage management Which of these ratios indicate the firmâs ability to use its assets to an increase in sales: (Points : 3)Profitability ratios market value ratios Liquidity ratios Fi...
- For a profit making company other things being constant increased use of debt generally means decreased ROE Points 3 True False For a profit making company, other things being constant, increased use of debt generally means decreased ROE. (Points : 3)True False
- The earnings of Omega Supply Company have grown from 200 per share to 516 per share over a nine year time period Determine the compound annual growth rate The earnings of Omega Supply Company have grown from $2.00 per share to $5.16 per share over a nine year time period. Determine the compound annual growth rate. (Points :...
- ROI cannot be referred to as Points 3 ROE Return on assets ROA all of the above ROI cannot be referred to as: (Points : 3)ROE Return on assets ROA all of the above
- The net asset value NAV of a mutual fund refers to A The amount of load carried by the fund B The asset difference between the index portion and the managed portion of the fund C The The net asset value (NAV) of a mutual fund refers to:A.The amount of "load" carried by the fundB.The asset difference between the index portion and the managed portion of...
- You are the executive officers of Big Buns Inc BBI BBI manufactures different types of chairs and accessories. You have had several good years and have decided to expand BBI is looking at You are the executive officers of Big Buns, Inc. (BBI). BBI manufactures different types of chairs and accessories. You have had several good years and have decided to ex...
- My son plans to go to college and plans to pay most of his first years expenses himself In exactly five years from today he wants to have 17000 accumulated If he plans to pay equal annual dollar My son plans to go to college and plans to pay most of his first years' expenses himself. In exactly five years from today, he wants to have $17,000 accumulated. If he pl...
- Savings and loan are also referred to as A Building and people societies B Building and loan societies C Savings banks D Commercial banks E None of the above Savings and loan are also referred to asA.Building and people societiesB.Building and loan societiesC.Savings banksD.Commercial banksE.None of the above
- The early savings and loans were managed and directed by A The government B. Depositors C The bank directors D All of the above E None of the above The early savings and loans were managed and directed byA.The governmentB.DepositorsC.The bank directorsD.All of the aboveE.None of the above
- Estimate American Airlines approximate WACC use the most recent yearâs debt ratio to find the weights of debt and equity If your company issues preferred stock for simplicityâs sake ignore it Estimate American Airlines approximate WACC; use the most recent yearâs debt ratio to find the weights of debt and equity. If your company issues preferred stock, for s...
- The cash records of Crane Company show the following. The cash records of Crane Company show the following. For July: 1.The June 30 bank reconciliation indicated that deposits in transit total $780. During July, the ge...
- Subsidiary Acquired for Cash Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporation's stock on January 2, 20X3, for $72,000 cash. Summarized balance sheet data for the companies on
- Depreciation Methods A delivery truck costing $20,000 is expected to have a $2,000 salvage value at the end of its useful life of four years or 100,000 miles. Assume that the truck was purchased on J
- Amortization Expense Smith & Sons obtained a patent for a new optical scanning device. The fees incurred to file for the patent and to defend the patent in court against several companies which chall
- Dan bought a hotel for $2,600,000 in January 2011. In May 2015, he died and left the hotel to Ed. While Dan owned the hotel, he deducted $289,000 of cost recovery. The fair market value in May 2015 wa Dan bought a hotel for $2,600,000 in January 2011. In May 2015, he died and left the hotel to Ed. While Dan owned the hotel, he deducted $289,000 of cost recovery. The fa...
- Constanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. She has owned and lived in the house for 30 years. Her selling expenses are $22,500. What is C Constanza, who is single, sells her current personal residence (adjusted basis of $165,000) for $450,000. She has owned and lived in the house for 30 years. Her selling e...
- Sunland Company can produce and sell only one of the following two products: Sunland Company can produce and sell only one of the following two products:OvenHours RequiredContributionMargin Per UnitMuffins0.2$7Coffee Cakes0.3$8The company has oven...
- The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as f...
- Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.Activity Cost PoolCost DriverEst. OverheadCo...
- Most of the revenues generated by savings associations are from while most of the expenses are from A Loan interest and fees interest paid on deposits B Nonmortgage loan interest Most of the revenues generated by savings associations are from ____, while most of the expenses are from ____.A.Loan interest and fees, interest paid on depositsB.Nonmor...
- Overnight Publishing Company OPC has 33 million in excess cash The firm plans to use this cash either to retire all of its outstanding debt or to repurchase equity The firmâs debt is held by Overnight Publishing Company (OPC) has $3.3 million in excess cash. The firm plans to use this cash either to retire all of its outstanding debt or to repurchase equity. ...
- 1 Uncle Tim gave me 130 today for my birthday He also promised to give me another 130 each for my next two birthdays If I deposit all the money I receive from my uncle Tim on the day it is given 1- Uncle Tim gave me $130 today for my birthday. He also promised to give me another $130 each for my next two birthdays. If I deposit all the money I receive from my unc...
- Generally, which of the following is true where rE is the cost of equity rD is the cost of debt and rA s the cost of capital for the firm Generally, which of the following is true? (where rE is the cost of equity, rD is the cost of debt and rA s the cost of capital for the firm.A.rD> rA> rEB.rE> rD> rAC.rE>...
- Which one of the following has to occur if the NPV of an independent project is positive The AAR will equal the IRR The IRR will be less than the required return The payback period will exceed Which one of the following has to occur if the NPV of an independent project is positive?The AAR will equal the IRR.The IRR will be less than the required return.The payb...
- You need to accumulate 10000 To do so you plan to make deposits of 1600 per year with the first payment being made a year from today into a bank account that pays 651 annual interest Your You need to accumulate $10,000. To do so, you plan to make deposits of $1,600 per year - with the first payment being made a year from today - into a bank account that pa...
- 1 Giggle Inc reports the following abbreviated balance sheet Cash 8000 Other Asset 1. Giggle Inc reports the following abbreviated balance sheet: Cash = $8000 Other Asset = $20000 Debt = $0 Equity = $28000 Number of shares outstanding = 3000 Gigg...
- Assume that X corp needs 100000 New Zealand dollars 180 days from now If the probability distribution is Possible Value of New Zealand Dollars in 180 days Probability Assume that X corp needs 100,000 New Zealand dollars 180 days from now. If the probability distribution isPossible Value of New Zealand Dollars in 180 daysProbability$0.4...
- Your supplier offers term of 126 Net 45 Calculate the cost of the trade credit if your firm does not take the discount and pays on day 45 The effective annual cost of the trade credit is Your supplier offers term of 1.2/6, Net 45. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 45. The effective annual cost o...
- Assume the credit terms offered to your firm by your suppliers are 294 Net 30 Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30 The effective Assume the credit terms offered to your firm by your suppliers are 2.9/4, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays ...
- What is the Macaulay duration of a five year 1000 par value bond with 6 annual coupons and an effective rate of interest equal to 7 What is its modified duration What is the Macaulay duration of a five year 1000 par value bond with 6% annual coupons and an effective rate of interest equal to 7%? What is its modified duration.
- A 12year 5 coupon bond pays interest annually The bond has a face value of 1000 What is the change in the price of this bond if the market yield rises to 7 from the current yield of A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond if the market yield rises to 7% from t...
- Your company bonds have a par value of 1000 a current price of 1234 and they will mature in 20 years What is the yield to maturity on these bonds if the bonds have 725 coupon rate and pay Your company bonds have a par value of $1,000, a current price of $1,234, and they will mature in 20 years. What is the yield to maturity on these bonds if the bonds have...
- JadaTech purchased a used Crane for 50000 The operating cost was 5000 per month with average revenues of 7500 per month After two years the crane was sold for 11000 What was the rate of JadaTech purchased a used Crane for $50,000. The operating cost was $5,000 per month, with average revenues of $7500 per month. After two years the crane was sold for $11...
- You have 20000 to invest You want to purchase shares of Alaska Air at 4356 Best Buy at 5242 and Ford Motor at 906 How many shares of each company should you purchase so that your portfolio You have $20,000 to invest. You want to purchase shares of Alaska Air at $43.56, Best Buy at $52.42, and Ford Motor at $9.06. How many shares of each company should you p...
- A lump sum payment of 1000 is due at the end of 5 years The nominal interest rate is 10 semiannual compounding Which of the following statements is CORRECT The present value of the 1000 would A lump sum payment of $1,000 is due at the end of 5 years. The nominal interest rate is 10%, semiannual compounding. Which of the following statements is CORRECT? The pre...
- Santos Unlimited SU was originally unlevered with 4300 shares outstanding However after a major financial restructure SU now has 39000 of debt with an annual interest expense of 11 percent The Santos Unlimited (SU) was originally unlevered with 4300 shares outstanding. However, after a major financial restructure, SU now has $39000 of debt, with an annual inter...
- Oak Farms is an unlevered firm with 2050 shares outstanding and an EBIT of 650 Corporate earnings are taxed at a rate of 35 Calculate EPS for Oak Farms Note Your answer should be in Oak Farms is an unlevered firm with 2050 shares outstanding and an EBIT of 650. Corporate earnings are taxed at a rate of 35 Calculate EPS for Oak Farms. $________Note...